02178cam a22002657 4500001000600000003000500006005001700011008004100028100002300069245009000092260006600182490004100248500001700289520105400306530006101360538007201421538003601493690008001529690009101609700002101700710004201721830007601763856003701839856003601876w4433NBER20150331170214.0150331s1993 mau||||fs|||| 000 0 eng d1 aBlomstrom, Magnus.10aGrowth in a Dual Economyh[electronic resource] /cMagnus Blomstrom, Edward N. Wolff. aCambridge, Mass.bNational Bureau of Economic Researchc1993.1 aNBER working paper seriesvno. w4433 aAugust 1993.3 aGrowth and structural transformation of the manufacturing sector in developing countries are generally considered to be the result of the expansion of the "modem" (large-scale) sector relative to the "traditional" (small-scale) sector. Examining the sources of labor productivity growth in Mexican manufacturing, however, does not provide support for such a conclusion. Although we find that labor productivity levels vary almost in direct relation to establishment size, labor productivity growth shows no systematic variation by size class. In fact, small establishments have had the same rate of labor productivity growth as larger ones, partly because of the "excise-effect" (i.e. the exiting of low-productivity, small plants). Moreover, most of the variation in labor productivity across plant class sizes is found to be due to differences in capital intensity. The variation in TFP levels across size classes tends to be small. Thus, our results remove some justification of the policy measures that favor large firms in developing countries. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aO2 - Development Planning and Policy2Journal of Economic Literature class. 7aO4 - Economic Growth and Aggregate Productivity2Journal of Economic Literature class.1 aWolff, Edward N.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w4433.4 uhttp://www.nber.org/papers/w443341uhttp://dx.doi.org/10.3386/w4433